Task force chops Chrysler ad budget

President Obama’s auto task force flexed its muscle by cutting in half the $134 million Chrysler wanted to spend on advertising during its bankruptcy proceedings.

While they did chop the budget, the task force understood the need for advertising, which put them ahead of Judge Arthur Gonzalez who said: “Idle plants; why market?”

Robert Manzo, executive director of Capstone Advisory Group, who was testifying in the case, responded, “Advertising and marketing dollars are critical to make sure the right message is out there about Chrysler, what’s happening to Chrysler during this interim period and why Chrysler will be a brand going forward that is one that a consumer should continue to look at as one of their purchase opportunities.”

There’s also the matter of thousands of unsold Chrysler, Dodge and Jeep vehicles on dealer lots and in Chrysler’s inventory. The automaker is hoping the two-month plant furlough will bring those numbers down.